For those suffering extreme financial hardship, filing personal bankruptcy may seem the only option.
But declaring personal bankruptcy, either through Chapter 13 (reorganization) or Chapter 7 (liquidation), is a very serious matter that can affect a person’s credit standing for many years after.
Individuals should consider bankruptcy very carefully before starting the process. To that end, it would be well worth a visit to one of several good websites with information about Chapter 13 and Chapter 7 bankruptcy.
Here are a few:
—American Bar Association: Discusses bankruptcy advantages, disadvantages and alternatives. http://www.abanet.org/publiced/practical/bankruptcypros.html
—Bankruptcy Law: Serves up in-depth look at bankruptcy, including reasons for filing, 10 things a person should know about it, and an explanation of the process. http://www.bankruptcylaw.org/Basics/Good-People.html
—FindLaw: Features bankruptcy basics, with a special focus on Chapter 13 and Chapter 7. http://bankruptcy.findlaw.com/bankruptcy/bankruptcy-basics/
—Internal Revenue Service: Manuals that lay out the legal guidelines and procedures for filing for Chapter 7 and Chapter 13 bankruptcy. http://www.irs.gov/irm/part5/irm(UNDERSCORE)05-017-009.html
—U.S. Courts: Provides overview to all forms of bankruptcy, including Chapters 7 and 13. http://www.uscourts.gov/bankruptcycourts/bankruptcybasics.html
©2013 McClatchy-Tribune Information Services
Distributed by MCT Information Services